2010- Real Estate Outlook
As we are entering the New Year, I thought it would be wise to take a look at what the REAL experts in the field are pulling from the most reliable sources, our real estate reports. So, before you read some nonsense online or, in the papers, here it is from the "Horse's mouth":
Existing-Home Sales Post Another Big Gain
Existing-home sales climbed 7.4 percent in November to a seasonally adjusted annual rate of 6.54 million units from 6.09 million in October, and they were 44.1 percent higher than the 4.54 million units sold in November 2008, NAR reported this morning. This is the highest sales level since February 2007 when it was 6.55 million.
Lawrence Yun, NAR chief economist, attributes much of the sales increase to the expansion of the homebuyer tax credit. "This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead. We expect buying activity to ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010."
Housing Market to Stabilize in 2010: Report
The latest reports find that increased home affordability and government incentives will help stabilize the housing market in the coming year.
"If efforts to ease foreclosure can and do succeed, there could be significant recovery in housing values in 2010," says Michael Feder, President and CEO of Radar Logic. "Inventories are close to the norm of six months' supply and prices have returned to 2003/2004 levels. Activity is much stronger than normal for this time of year, and there is evidence of qualified buyers waiting on the sidelines. If we can put an end to the financially-driven weakness, it may well be time for housing values to go up," Feder says.
Lawrence Yun, NAR chief economist, comments: "We expect another surge in the spring as more homebuyers take advantage of affordable housing conditions before the tax credit expires."
Tax Credit:
Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.
Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.
"Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade," Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.
Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010.
© 2010 Florida Realtors®
I hope you will find this article helpful. Many of my clients did. If you are serious about getting an amazing steal, before you have missed entirely on this market, you need a pro, who knows the market and who can negotiate a good deal between two sensible and serious sides. If you are ready, I am the right person for you.
Cordially,
Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM
786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com
http://www.hollywood-beach-real-estate.com; BLOG: http://4realestate.wordpress.com
http://www.linkedin.com/in/miamirealtorkatesmith
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